Many Americans do not have the funds that they once did years ago due to the economic recession. This has affected the buying power many people have, which may not allow them to spend as much on extracurricular activities or donating to causes like they may have done in the past. Losing those spending dollars can have a huge impact on businesses in New Jersey and across the United States. If a business is having a difficult time making ends meet, filing for Chapter 11 bankruptcy may be a great way for the company to get back on its feet.
Recently, the YMCA of Metropolitan Milwaukee buckled under the economic pressure and filed for Chapter 11. The CEO of the organization stated that the YMCA was worth saving and that it matters to the community. The company had fallen into $29 million in debt and is now going to sell some of its real estate to begin the process of paying it off.
During the last several years, the company noticed a decrease in memberships as well as lower contributions. This began to drop the company into debt and caused the officials to make some changes. YMCA officials began to eliminate some of the programs that were available as well as no longer providing salary increases and discharging some employees.
According to the company CEO, by making tough choices to continue to pay on the debt, the company lost its competitive edge. All of these changes will be a way for the company to fight back, get a new location and search for suitable buyers. If a New Jersey company is struggling to make ends meet because of declining sales, filing for Chapter 11 can be a great solution for reworking the company and allowing it to emerge again stronger and in a better financial position.
Source: wisn.com, “Milwaukee YMCA files for Chapter 11 bankruptcy“, Hillary Mintz, June 4, 2014